As a business owner you will need to safeguard your personal assets from business debts and liabilities. Incorporation refers to the process of forming a new legal business entity (corporation) that the state recognizes as a person under the law. It will therefore enable you to run your business with no worries about losing your personal assets due to a business obligation. Incorporation process may differ in each state and it is therefore important for you to research specific information relating to Kentucky.
Things You Will NeedBusiness License
Step 1Assign a principle office. Select a principal office and register it with the Office of the Secretary State either online or via mail. The principal office can be situated either within or outside Kentucky. It houses the corporation company's principal executive offices.
Step 2Select a registered agent. The registered agent must be a resident or domestic business entity in Kentucky. Any foreign entity acting as a registered agent must be authorized to carry out business in Kentucky. The registered agent is in charge of receiving service of process during legal actions. Visit the National Registered Agents website for leads on agents in Kentucky. The registered agent must sign the article of incorporation.
Step 3Choose a corporate name. Research business name records from the Secretary of State to ensure that the name you choose is distinguishable from other existing business entities that have already been filed. Your corporate name must include the word company, corporation, limited, incorporated or an abbreviation. Engineers and surveyors must get approval from the Kentucky Board of Licensure for Professional Engineers and Land Surveyors if they want to include the words Survey or Engineer in their corporate name
Step 4File necessary paperwork. File Articles of Incorporation with the Office of the Secretary of State if you are forming a corporation and Articles of Organization if you are forming an LLC. The Articles of Incorporation consist of the number of shares the corporation is allowed to issue as well as the address of the registered agent and office. It costs $40 plus $10 organization tax fee if you will issue 1000 shares or less. The Articles of Organization includes the address of the registered office and agent, the management and the principle office. It costs $40 to file this document.
Step 5Get a business license. Visit the local city or county authorities where you will operate your business to get a license for your business. The license requirements will vary according to the kind of business you intend to run.